Question

Boran Stockbrokers, Inc., selects four stocks for the purpose of developing its own index of stock market behavior. Prices per share for a year 1 base period, January year 3, and March year 3 follow. Base-year quantities are set on the basis of historical volumes for the four stocks.

Stock	Industry	Year 1 Quantity	Price per Share ($)
			Year 1 Base	January Year 3	March Year 3
A	Oil	100	31.50	20.75	22.50
B	Computer	150	65.00	49.00	45.50
C	Steel	75	40.00	32.00	29.50
D	Real Estate	50	16.00	6.50	2.75

Compute the price relatives for the four stocks making up the Boran index. (Round your answers to one decimal place.)

Stock	Price Relative
	January	March
A
B
C
D

Use the weighted average of price relatives to compute the January year 3 and March year 3 Boran indexes. (Round your answers to one decimal place.)

I_Jan=

I_Mar=

Answer 1